German research institute propaganda EU to recognize China's market economy status is conducive to the development of foreign trade tungsten industry

Recently, the German economic research institutes authoritative Munich IFO Institute for Economic Research published its submission to the European Parliament a report to the EU sends an important signal: should consider recognizing China's market economy status as soon as possible. Munich, Germany IFO is an independent, authoritative strong Economic Research Institute, published its business climate index, German economic sentiment and predict the outcome of economic policy recommendations by the German governments and the world's attention.

The so-called "market economy status" concept, is a main target in the companies rather than the terms of the anti-dumping and subsidies the country. In the face of corporate anti-dumping investigation, the company can prove that its operations in full accordance with the market mechanism, to avoid discriminatory treatment. Members of the WTO anti-dumping investigation to determine the dumping margin, did not get in China "market economy status", the anti-dumping cases initiated States may choose a surrogate country data cost of the commodity calculate the normal value, to determine the dumping margin without the use of their own data, which often lead to the dumping margin is easily overestimated, dumping determination easy to set up, so that Chinese enterprises suffer unfair treatment.

At present, China already has a market economy, recognize China's market economy status is a general trend, the EU acknowledged this early is a good thing for China and the EU. Moreover, the EU should be clear, even if does not recognize China's market economy status, but also according to the provisions in this year December 11 terminate the use of "surrogate country" approach in anti-dumping investigations. So far, the world has more than 80 economies recognize China's market economy status, many of them in New Zealand, Switzerland, Australia and other developed economies. China has become the world's second largest economy, the largest goods trading nation and the largest trading partner of more than 130 countries.

Although the EU dependence "does not recognize China's market economy status" approach to China a number of anti-dumping measures, but it was obvious problems and contradictions. By the end of 2014, 51 anti-dumping measures against China, the EU is still in effect only relates to less than 2% of the EU's total trade with China, but the EU for EU trade volume less than 2% above the set of anti-dumping measures accounted for 47% of the total number of existing anti-dumping measures. In addition, for Germany, Italy, France and Spain frequently support for Chinese iron and steel, chemical industry, anti-dumping, the report noted, and there is no clear evidence that the so-called "China's low-cost advantage or dumping" really exist.

The current European economy is in recovery, is still faced with uncertainties British "off Europe," the "refugees" and other events brought about as soon as possible recognize China's market economy status for the EU in terms of the benefits obvious. EU economic and trade will lead to a more healthy and rapid development, contribute to help the EU overcome the current economic difficulties, consolidate its position in the world economy. Not to grant China market economy status could threaten the future prospects for the smooth development of China-EU and China-EU FTA Investment Agreement negotiations. China is currently the only decision to Juncker investment from non-EU countries planned recapitalization by recognizing China's market economy status, the EU can further strengthen dialogue with China to promote European business activities in China, on the contrary, it will harm between Central Europe feelings and mutual trust, bring great negative impact.

For the industry, the steel trade has been led by the metal sides in conflict-EU anti-dumping cases centralized body, China supplied 50 percent of the world's steel, a great impact in the UK and the global steel industry, other metals, such as rare earth, also accounted for 90 percent of global supply, such as tungsten, molybdenum and other small metal mainly for export, mostly to foreign trade companies for a living, to recognize China's market economy status is conducive to the development of China's foreign trade, anti-dumping duty margin will also be more in line with the actual situation in China has greatly improved the business environment, the industry has been the formation of the anti-dumping good, their own get more living space and more equitable international treatment. On tungsten industry, recognize China's market economy status will facilitate the import and export of tungsten products, tungsten for the current downturn in the market a boost.

Two sides to strengthen communication remains an important channel to solve the problem, which for the development of Central Europe and the world economic recovery will benefit China-EU Summit was held in may help the two sides to seek more on 'whether to recognize China's market economy status' issue good solution. But whether to grant China market economy status and the fulfillment of Article 15 are two different things, "China's WTO accession protocol", the two should not be confused. When the "Protocol" as specified in article 15, WTO members should at December 11, 2016 to terminate the use of "surrogate country" approach in anti-dumping investigations. This is an international treaty obligations should comply with all WTO members, and does not depend on any member of the national standards. Therefore, regardless of whether to grant China market economy status, the EU as a WTO member, there are legal obligations of Article 15, "the Protocol", and can not avoid shirk.